How to Hire Remote Employees In

Greece

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The Basics

Currency
Euro (EUR)
Employer Taxes
22.54%
Payroll Frequency
Monthly
Official Language
Greek
OVERVIEW

Employment in

Greece

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors

  • Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
  • Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
  • Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.

Disadvantages of Hiring Independent Contractors

  • Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
  • Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
  • Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
  • Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.
EMPLOYMENT IN
Greece

Set up a subsidiary in

Greece

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Greece can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Greece, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Greece.

EMPLOYMENT IN
Greece

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Hire with Panther

Paying Remote Employees

Paying employees in Greece is not the same as paying workers in your own country. Employees have to be paid using Greece’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Greece

 Specific Information

Working Hours

Full Time employment is considered 40 hours weekly, and 8 hours daily.

Overtime

Extra Time (Iperergasia):  The maximum time per day is 1 hour and is paid at a rate of 120% of the regular salary.

Overtime (Iperoria): The maximum time per day is 2 hours and 120 hours per year. These hours are paid at a rate of 140% of the regular salary. For more than 120 hours per year, approval from the Greek Labor of Ministry is required.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Taxes

Payroll Tax

Employer

22.54% - Employer Contributions
- Employer Contributions

Minimum Wage

650 € per month and 29.04€ per day.

Payroll

Pay Cycle

Monthly, usually by the end of the month.

13th Salary

Employees are entitled to 13th and 14th salaries.


In Greece, there are mandatory 13th and 14th salaries which includes Easter (half a month’s salary), vacation bonus (half month’s salary) and Christmas (a full month’s salary).

Leave

Paid Time Off (PTO)

  • Employees that are working 5 days a week are entitled to a minimum of 20 prorated days of leave per year at full pay. For each additional year of work, employees are entitled to an additional day of leave up to a total of 22 days.
  • Employees with 10 years of service for the same employer or 12 years of service with any employer are entitled to 25 days’ leave per year.
  • For 25 years of service or more, employees are entitled to 26 days’ leave. In addition, employees are entitled to an annual leave bonus equal to the pay for leave, with a maximum of half a salary.

Public Holidays

7 public holidays and 4 optional holidays.

Sick Days

In case of sick leaves, the employer is obliged to pay the employee: 13 days only in the 1st year and 25 days from the 2nd year onwards. The days are paid by both the employer and the EFKA.

Maternity Leave

Maternity leave – 119 calendar days. (Only the 1st month is paid by the employer the rest is paid by the EFKA). 56 calendar days should be taken before the childbirth date and the remaining 63 calendar days after the birth.

In addition to the maternity leave, 6-month leave is paid the minimum wage by the labor Employment Office (OAED).

Instead of receiving reduced daily working hours mothers may agree with their employers to receive an extra 3.5 months leave paid by the employer.

Paternity Leave

Fathers are permitted 2 days of paid leave after the birth of their children.

Parental Leave

2 days per childbirth paid by the employer.

Other Leave

Leave for children’s school grading: 4 working days for each child who is not older than 16 years old. This kind of leave may be used by one of the parents.

Elections leave:
the duration is relating to the distance between the polling station and the workplace. Generally, is 1 to 3 working days.

Marriage Leave

5 working days.

Bereavement Leave

2 working days for the death of husband/wife, child, parents, brothers.

Termination

Termination Process

An indefinite employment agreement is considered to be employed with a probationary period for the first 12 months of the agreement, which may be terminated during the probationary period without notice and without severance pay unless otherwise agreed by the parties.

After the first 12 months, the employee cannot be terminated without prior written notice from the employer, which will take effect from the day after the employee is notified.

These provisions apply for all forms of dismissals, including collective dismissals for employees that are not workers. Terminating workers doesn’t require any notice.

A fixed-term contract can be terminated by the employee or the employer before the end date immediately without notice period for a ‘Significant reason’. Significant reason includes events during the employer-employee relation which make it impossible to continue the agreement in good faith. If a significant reason exists, the employer is not obliged to pay compensation.

Furthermore, article 40 of law 3986/2011 mentions that a fixed-term employment contract, which includes a term for early termination in accordance with requires severance calculation is automatically converted into an indefinite-term employment contract upon termination.

Notice Period

If the employment relationship is based on a fixed-term contract, it can be terminated immediately without notice by either the employee or employer.  However, a reason (i.e. breach of contract, failure to comply with the terms of the contract, etc.) is given.  If no reason is given, the employee is able to make claim in court and is able to receive compensation for the wages that would have been received until the contract expiry date.

If the employment contract is for an indefinite period, the length of the notice period depends on the length that the employee has been employed:

Number of Years: 1-2 years
Notice Period: 1 month

Number of Years: 2-5 years
Notice Period: 2 months

Number of Years: 5-10 years
Notice Period: 3 months

Number of Years: 10 years+
Notice Period: 4 months

Severance Pay

For non-workers with indefinite employment agreement the severance pay is calculated as follows:  

Up to 1 year of service – no severance pay required

From one year of service – the severance changes according to the length of service and can be up to 12 months of severance.